After 17 years in the real estate sales and finance business, it seems as though I've come across every imaginable financial scenario possible. But there's one thing in particular that continues to plague my mind all too often. And that is the lack of education for kids and young adults specifically as it relates to buying and financing one of the most basic of all needs.... housing!
I've surveyed parents for years asking several simple questions...
- Do your kids get any basic educational benefits in school that specifically relate to buying and/or financing a home?
- Do your kids get any training whatsoever on how to negotiate a simple contract?
- Do your kids get any instruction outside of what they learn at home about credit management?
Unfortunately, almost without exception, the answer is a resounding no! Why??
Given that in Southern California the average debt incurred on a mortgage is a quarter of a million dollars and upward, isn't it of paramount importance that our kids and the younger generations understand at least the most essential components of a mortgage instrument and purchase contract?
So what's the answer? If the educational machine won't step up to the plate, who will? Perhaps as parents we have no other alternative than to dig in ourselves and find solutions and intuitive ways to bring answers to our precious little ones. How satisfying it would be to be able to look back one day and say that part of the legacy left to our children was to instill within them a firm grasp of the wonderful opportunities that the wide world of real estate can provide. And on the other hand, how negligent to ignore the responsibility placed upon our shoulders to do so!
To that end, we'd like to pose the question to you, our clients and readers. What are the solutions? Why is there such a void in the education system when it comes to teaching specific real estate and mortgage principles? We'd love for you to comment!